-- The effects of the geographical and basis risk -- Pricing the power of the wind a. Introduction to wind derivatives …Weather derivatives are financial instruments that can be used by organizations or individuals as part of a risk …, and will provide strategies for effectively hedging against weather-related risk. This book will link the mathematical …

We focus on two particular aspects of model risk: the inability of a chosen model to fit observed market prices at a … given point in time (calibration error) and the model risk due to the recalibration of model parameters (in contradiction to … model risk in a common framework, and consider the trade-offs between them when choosing a model and the frequency with …